Top 7 Considerations When Choosing an ERP System

An Enterprise Resource Planning (ERP) system could help your company become infinitely more efficient, organized, and productive. The following are the seven major things that are worth considering to find the best ERP implementation for your company.

1. The Costs and your Budget

The prices of ERP software vary greatly. However, a higher price does not necessarily mean that it will be better for your company. Sometimes, a higher priced system can make things more complicated and less efficient.

When considering costs, include the training costs, management, customization, additional hardware and equipment costs as well as extra IT staff aside from the price of the software itself. Your normal business operations may also be disrupted while the transition, certain updates, and training sessions are ongoing.

2. The company’s current needs

The main reason why an ERP system is needed is to support the goals and needs of the company. So, choose one that will be appropriate for the nature of your business, company goals, number of employees, and the complexity of the business functions that you do.

Do not buy modules, add-ons, or packages that you don’t need. The features that will be most useful and important for you will depend on your company’s needs.

3. The company’s future needs

Since an ERP system is a long-term investment, also consider what you think your company will need in a few years’ time. Look for a system that is flexible enough to accommodate certain changes or additions to help support your updated goals, new employees, or expansions in the future.

4. Your Staff’s opinion

Because everyone will be part of the change that accompanies an ERP system, it is also important to engage your staff. Ask about their thoughts or opinions but also express your side. The viewpoints of your customers, suppliers, and colleagues also matter.

Success will be achieved if you and your staff are on the same page about this change. All ERP projects will also rely on the staff using and managing it so make sure that everyone is willing to learn and adjust.

5. Business Processes

You should also learn, investigate, and understand how things get done in your company. By walking around and observing how the staff work and how your business operates right from the first steps, you will get a clear view of when and where changes or improvements are needed.

Review how you are currently performing versus your preferred or ideal performance measures. List down or take note of the key areas of the business in need of innovations that you would like to see and think of how an ERP system can address that.

6. A Timeline for your goals

Just like in any small or big project, it is important to know not just your objectives but also the time you need in order to achieve them. Set expected dates by which time you need or want certain goals to be accomplished.

By planning ahead, you can choose the right system that will work for you at your desired pace so that tasks are finished before or by the set time.

7. Ability to work with the existing system

Of course, no matter how great or advanced an ERP system is, the whole purpose is defeated if you, your staff, or your present equipment cannot run or use the software.

Bear in mind that you might need a few updates or upgrades of servers, bandwidth, and equipment in order to make the most out of your investment. It may help to look for something that is based on the newest technology that your current equipment can handle.

These top 7 considerations will hopefully aid you in your decisions. You could also talk to other organizations who have undergone this change in the past or a trusted ERP consultant. A thorough hands-on demonstration is also extremely helpful.